When Caroline Gurney took over as Future Generation Chief Executive Officer in late 2021, the group’s founder Geoff Wilson flagged the prospect of launching a third philanthropic investment fund.
“I had always wanted to do something for women, particularly around financial literacy and economic equality,” says Gurney, who had spent the previous two decades working for UBS and Citigroup across Asia, Europe and Australia. “So the idea of a fund run by women, for women, began to form in my mind.”
It took almost three years – and one particularly productive meeting with Bruce Tomlinson, Investment Director at Andrew and Nicola Forrest’s Minderoo Foundation – for the idea to take shape. Last December, Future Generation launched Future Generation Women, a bold investment initiative to drive gender equality in Australia.
The unlisted trust, seeded with $100 million from Minderoo, marks the third investment vehicle under the Future Generation umbrella. The group also runs two listed investment companies – Future Generation Australia (ASX: FGX) and Future Generation Global (ASX:FGG) – which donate 1% of their assets to charity each year. Since launching a decade ago, the group has contributed almost $90 million to Australian nonprofits, placing it among the top 30 corporate donors in Australia.
“Future Generation Women is not just an investment fund,” says Gurney. “It’s a movement. It’s a step closer to a world where gender equality is not an ideal but a reality.”
Like its counterparts, Future Generation Women is run by a group of leading fund managers, who waive all management and performance fees to enable the donation of 1 per cent of assets.
What sets Future Generation Women apart, however, is its commitment to having the capital managed exclusively by women. These women portfolio managers aim to introduce a gender lens into their investment decisions, considering factors like board composition, equal pay, how companies attract, retain and promote women, and policies around work life balance. By addressing these issues head-on, Future Generation Women hopes to drive systemic change across industries.
The Australian equities team behind Future Generation Women boasts some of the best-known managers in the domestic market. These include Catherine Allfrey of WaveStone Capital, Katie Hudson from Yarra Capital, Airlie Funds Management’s Emma Fisher, Jun Bei Liu of Ten Cap, Julia Weng from Paradice Investment Management and First Sentier’s Dawn Kanelleas.
All these managers have outperformed their benchmarks since their funds first launched. This track record stands in stark contrast to recent Morningstar data showing that only 50% of active funds in Australia surpass their benchmarks. On the global equities side, Future Generation Women’s investments are overseen by Nikki Thomas of Magellan, Fleur Wright of Northcape Capital, Qiao Ma from Munro Partners, Armina Rosenberg from Minotaur Capital, Vihari Ross of Antipodes Partners, and Chanel Stuart-Findlay from Plato Investment Management.
Future Generation founder Geoff Wilson, who founded and chairs Wilson Asset Management, insists the all women-led approach is not virtue signaling.
“We’re doing this because women are better fund managers than men – that is a fact,” he said at the fund’s launch in December, referencing several reports that found female investors typically outperform their male counterparts by employing strategies that are more diversified and risk conscious.
Despite this, only 19 per cent of portfolio managers in Australia are women – a statistic that Gurney and Wilson are determined to change.
“By allocating capital to women fund managers, we’re actually giving them a bigger seat at the table,” says Gurney. “We’ll be working together to make sure they have the clout and scale to succeed.”
Gurney says assembling an all-female-managed fund in a competitive industry where women are underrepresented wasn’t as difficult as some had anticipated. “The quality of the fund’s managers has well and truly answered the sceptics,” she says. “There’s been a hunger for women-led funds to shine. It’s just about creating the right space for them to make an impact.”
Impact Beyond the Numbers
For more than a decade, Future Generation’s dual-purpose model has focused on delivering competitive investment returns while making a meaningful social impact. Since 2014, Future Generation Australia has delivered an average annual return of 9.36%, outperforming both the S&P/ASX All Ordinaries Accumulation Index and the S&P/ASX Small Ordinaries Accumulation Index. Over the same period, Future Generation Australia and Future Generation Global have donated a combined $87.2 million to non-profits supporting children and youth at risk and youth mental health.
With Future Generation Women, Gurney aims to take the model even further, addressing the urgent need for greater gender equity in the Australian economy. The 1 per cent donation from the fund will go to organisations that are working to combat harmful gender norms; improve financial literacy for women and their children; and increase access to employment for those most impacted by economic inequality, including older women, Indigenous women, and those from rural and regional areas.
Despite women representing half the population, they remain underrepresented in leadership positions across many industries. Gurney stresses that this gap isn’t just a social issue; it hampers
Australia’s economic potential.
“By investing in women, we’re investing in Australia’s future prosperity,” she says. “The economic case is undeniable. Tapping into the talent and skills of women will bring more people into the workforce, and the diversity of perspectives will enrich every industry.”
It’s a vision shared by Nicola Forrest AO, co-founder of the Minderoo Foundation, which helped kickstart Future Generation Women with its $100 million donation.
“Future Generation Women is an important and welcomed spotlight on women and their potential in Australia – particularly those in the funds management industry,” Forrest says. “Every year, gender inequality continues to cost Australia A$128 billion. To truly shift the dial and overcome the outdated norms that hold our entire country back, we need changemakers that are ready to speak up, act and embrace collaboration. This is why we’re proud to be standing alongside Future Generation as it champions investment in women.”
Future Generation Women: A Three-Fold Impact
Future Generation’s mission has traditionally been twofold: to generate money for both investors and the Australian non-profit sector.
With Future Generation Women, the impact will actually be three-fold.
As Gurney explains, “First, we’re opening doors for more women in funds management by increasing their assets under management and nurturing their portfolio construction skills. Second, we’re helping to level the playing field for women through our not-for-profit partners. And third, we aim to change the investment landscape by introducing a gender lens to our investment strategies.”
As with other Future Generation funds, Future Generation Women is managed by an expert Investment committee (IC) tasked with ensuring it has the right balance of managers and investment strategies to drive investor returns.
The portfolio construction process began with all prospective fund managers submitting a Request for Proposal (RFP), outlining their investment philosophy, process, performance history and approach to diversity.
From there, the IC created a portfolio that balanced size, style bias, and potential for alpha generation. Using BARRA, an advanced analytical tool, the IC examined various manager configurations and evaluated risk characteristics such as growth, value, earnings per share, momentum, and size based on the underlying securities. The goal was to build a portfolio that relies heavily on stock-picking expertise, identifying and maximising stock-specific risks while minimizing market risk for optimal performance.
The IC also plans to use MSCI ESG Research to assess the ESG Values Alignment of the portfolio.
Future Generation Women’s IC includes best-in-class professionals like Anna Shelley (Chief Investment Officer at AMP), Bruce Tomlinson (Investment Director, Minderoo Foundation), Alison Hill (State Chief Investment Officer at QIC), John Coombe (Principal Consultant and Director at Jana), Suzanne Branton (CIO at CareSuper) and Geoff Wilson (Chair and CIO at Wilson Asset Management and Founder of Future Generation).
Elana Rubin, a leading non-executive director who also sits on Future Generation Women’s Advisory Council, highlights the IC’s 50% female representation, a rarity in the investment world. Rubin adds that the IC is also committed to nurturing emerging female talent by offering opportunities for less experienced women to observe and build expertise in portfolio management.
“We all know the power of mentors and sponsors on one’s career, and being given our first opportunity,” she says. “So, we’re going to use the IC as a kind of incubator. We’re going to invite women who are interested in this field, but have less experience, to come and observe what we do, so that they can build up their expertise in portfolio construction and strategic investment. That way we’re deepening the pipeline of future female fund managers.”
Rubin says it is vital that more women get their “finger on the capital” in Australia.
Effective Giving: Making a Meaningful Social Impact
In addition to its investment offering, Future Generation also taps into a growing demand for more effective and meaningful giving.
As Jennifer Westacott, Chair of Future Generation Global, explains: “I think Australians want to be a nation of givers but they want to do that in a structured way. People have a very low tolerance for just giving money and not feeling that they’re part of something. They want to understand the effect of their giving.”
Drawing on its roots in funds management, Future Generation follows an investment-like approach to philanthropy, backing small to medium-sized organisations that have proven track records and the potential for greater impact.
In each of its cause areas, it constructs portfolios of complementary not-for-profits for the same reasons that fund managers build a diversified investment portfolio: to mitigate risk and maximise returns. All partners in each portfolio are working towards the same overarching goal – but using different approaches – and the portfolios have all have a national footprint, with a mixture of national, state and community-based organisations, including Aboriginal Community Controlled Organisations.
Legendary stockpicker David Paradice, who was one of the first fund managers to support Future Generation by managing money on a no-fee basis, says fund managers are used to recognising how important allocation is to overall success. “It’s really exciting to see Future Generation now bringing this kind of thinking to how we can help young Australians more meaningfully,” he says.
Future Generation Women will open an Expression of Interest process for prospective non-profit partners in the middle of this year, with the aim of unveiling its portfolio of impact partners by December. Emily Fuller, Future Generation’s Social Impact Director, says: “Our experience with Future Generation Australia and Future Generation Global shows us that by running an open process, we unearth hitherto unknown organisations that are doing incredible work across the country.”
A Promising Outlook
Though still in its infancy, the performance of Future Generation Women has been promising. With a well-diversified portfolio that blends capital growth and income, the Investment Committee believes the fund is well-positioned to navigate market uncertainties.
With the addition of the new women’s fund, Future Generation has also moved to boost its capabilities with the appointment of its first ever Chief Investment Officer, Lee Hopperton.
Gurney says Hopperton, who has more than 25 years’ experience in the investment industry, having held senior roles at JPMorgan, Macquarie, AusCap and Perpetual, would add significant distribution and investment muscle to Future Generation’s operations and elevate its growth strategy.
Yet, for Gurney, the overarching goal remains simple: “Our mission is to help Australia become the fair, productive, and competitive economy it can be. We’re not just raising funds; we’re raising the standard for how businesses and investors approach important social issues, like gender equality, mental health and disadvantage.”
Ingrid Pyne, Senior Editor and Corporate Affairs Advisor, Future Generation
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.
For the full article visit the ASA Equity Magazine March 2025 Edition here.
Licensed by Copyright Agency. You must not copy this work without permission.
